Value Management Methodology

Topics: Idea, Costs, Function Pages: 7 (1308 words) Published: September 9, 2011
VM Notes (draft)

Chapter 4
4.1 4.2 4.3 4.4 4.5

Value Management Methodology

Information Phase Function Analysis Phase Creative Phase Evaluation and Development Phases Implementation and Follow-up Phases

Lecture_5 & 6 by Sbasu



VM Notes (draft)

Chapter 4: Value Management Methodology
1. Confirm Study objectives

Information Phase 2. Confirm scope Information Phase 3. Build knowledge and understanding of the entity and its context elements of value) and establish success criteria Information Phase, Function Analysis Phase 1. Generate multiple ideas to achieve best value and, where appropriate, best value for money of the entity Creative Phase 2. Evaluate ideas (Judgment Phase) Evaluation and Development Phases 3. Develop options and proposals Evaluation and Development Phases 8. Make recommendations and, where appropriate, decisions Evaluation and (including the

Development Phases 9. Prepare an action plan

Implementation and Follow-up Phases


Information Phase

The objective of the Information Phase is to complete the data collection process that was started in the Pre-Workshop stage. This include: Brief the value study team and allow the team to ask questions Conduct site visit if necessary and if not not carried out yet Agreement of the study team on the objective, scope and criteria for evaluation of improvement A final assessment of the scope statement


Function Analysis Phase

At the core of the VM process is the analysis of functions. A key differentiator of Value Management from other problem solving processes is function analysis. The Value Management process is function based not component based.

Lecture_5 & 6 by Sbasu



VM Notes (draft)



The key concept of Function Analysis (FA) is that basic function of an entity (item or service) is what makes it work or sell. This is the reason that customers buy a product. Through FA it is possible to identify genuine need, wastage, duplication etc., thus providing scope for value to be improved. All functional performance costs money. But not all performance is needed or even wanted. By eliminating functions not/may not be required, value of an entity can be improved. It is a structured process that identifies and analyses functions, their interrelationships and, where appropriate, total costs or resources used.


Characteristics of Functions

Functions can be divided into two main categories, Essential (Basic) Functions and Supporting (Secondary) Functions. Essential Functions – these are primary/ basic/ essential to make the product, service or process work. These are basic function(s) of an entity and cannot be changed. Supporting Functions –support the essential function. These can be modified or even eliminated. Supporting Functions are often grouped under four headings: Assure Convenience, Assure Dependability, Satisfy User (Customer) Attract User (Customer).

For an effective FA keep the output function of the system clearly in mind. This is the main reason for the entity to exist. This can be identified by asking “why does the system exist?”. The FA, in effect breaks down an output function into its component functions. Functions are best analysed by asking what does it do. This can be answered by two words, a verb followed by a noun e.g. a pipe “transports water”, a door “provides access”, etc. Thus a functions can be expressed by a verb and a noun. 4.2.3 1. Steps in Function Analysis Identify and define work functions of the entity (product, project, or process) under study using active verbs and measurable nouns. Classify the functions as essential (basic) or supporting (secondary



Expand the functions identified in step 1 (optional)

Lecture_5 & 6 by Sbasu



VM Notes (draft)

4. 5.

Build a function Model – (eg. Function Analysis System Technique (FAST) diagram as demonstrated in the class)...
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